scholarly journals Not So Sweet: Economic Implications of Restricting U.S. Sugar Imports from Mexico

2019 ◽  
Vol 51 (3) ◽  
pp. 368-384
Author(s):  
Wilson Sinclair ◽  
Amanda M. Countryman
Keyword(s):  
Free Trade Agreement ◽  
Consumer Surplus ◽  
Trade Agreement ◽  
The United States ◽  
Partial Equilibrium ◽  
Free Access ◽  
Economic Implications ◽  
Welfare Impacts ◽  
Partial Equilibrium Model ◽  
The U.S

AbstractAfter Mexican sugar producers gained unlimited, tariff-free access to the U.S. market in 2008, U.S. and Mexican governments bilaterally agreed to constrain Mexico’s sugar exports to the United States because of dumping allegations by U.S. producers in December 2014. This analysis employs a dynamic partial equilibrium model to estimate the price and welfare impacts of the U.S.-Mexico agreement by simulating the reimplementation of North American Free Trade Agreement sugar policies. Estimates suggest liberalizing the market would decrease U.S. sugar prices, translating to an average annual decrease in producer surplus of approximately $660 million and increase in consumer surplus of $1.67 billion across the simulation.

Understanding the Economic Implications & Constraints of U.S. Multilateral & Bilateral Free Trade Agreements by Analyzing NAFTA and the U.S.-Colombian FTA

2010 ◽  
Vol 6 ◽  
Author(s):  
Fabiani A Duarte ◽  
Fabiani A Duarte
Keyword(s):  
Economic Development ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
The United States ◽  
Unintended Consequences ◽  
Economic Implications ◽  
The U.S

By providing over $24 billion in foreign assistance to 154 countries, the United States was the largest economic and humanitarian aid donor in the world in 2008 (Schaefer, 2006; Tarnoff & Lawson, 2009). By viewing the U.S. government through this lens, U.S. free trade agreements (FTA), like U.S. foreign aid, assist economically-weaker countries to develop while advancing specific U.S. foreign policy initiatives. By analyzing NAFTA’s effects on Mexico’s economic growth and the provisions of the signed U.S.-Colombian Free Trade Agreement, this paper demonstrates the inefficiencies and unintended consequences of multilateral and bilateral FTAs. The analysis concludes by suggesting an alternative approach to proactive and productive economic development: regional economic FTAs. Keywords: free trade agreement (FTA), tariff, economic development program, foreign direct investment (FDI), internally displaced persons (IDPs), bilateral FTA, multilateral FTA, regional FTA

scholarly journals A Study of the Environmental Issues Associated with the Dominican RepublicCentral American Free Trade Agreement (DR-CAFTA)

2011 ◽  
Vol 8 (1) ◽  
Author(s):  
Shyamalendu Sarkar
Keyword(s):  
Free Trade ◽  
Capital Investment ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The United States ◽  
Economic Incentives ◽  
Central American ◽  
Environmental Objectives ◽  
Environmental Requirements ◽  
The U.S

The Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) with the United States was passed on July 28, 2005. The main goal of DR-CAFTA is to create a free trade zone for economic development. The Agreement is highly controversial with many contentious issues including concern about the environment, which is the focus of this study. The concern is that the environmental objectives are expected to be subservient to trade and other economic incentives which will lead to further deterioration of the environment in countries where the environmental standards are already low. The effects on the U.S. environment are expected to be minimal. However, it is feared that the U.S. manufacturing facilities may relocate to Central American countries to take advantage of low wages and low environmental requirements, which may result in loss of jobs and capital investment in the U.S. However, overall DR-CAFTA is expected to be beneficial in many ways, including an increase in trade and economic growth in all participating countries.

scholarly journals The peaceful resolution of U.S.-Mexican transboundary water disputes

2007 ◽  
Vol 2 (2) ◽  
Author(s):  
Alyssa M. Neir ◽  
Michael E. Campana
Keyword(s):  
Agricultural Production ◽  
Free Trade Agreement ◽  
Formal System ◽  
Trade Agreement ◽  
The United States ◽  
Transboundary Water ◽  
The North ◽  
International Boundary ◽  
Water Issues ◽  
The U.S

To deal with boundary and transboundary water issues along their border, the United States and Mexico established the International Boundary and Water Commission (IBWC) in 1889. Initially dealing only with surface water flows, its flexibility permitted changes such that groundwater and water quality issues could be addressed. In 1994, the U.S., Mexico, and Canada adopted the North American Free Trade Agreement (NAFTA) primarily to facilitate trade, but which can govern water as an article of commerce. Both NAFTA and the IBWC have been instrumental in promoting peaceful solutions to water issues. The article examines three cases: (1) Mexico's protesting of a U.S. plan to line the All-American Canal on the Mexico-California; (2) the underdelivery of Mexican Rio Grande water to the U.S. state of Texas; and (3) the case of an aquifer entirely within Mexico whose supply is being stressed because of a shift in agricultural production prompted by NAFTA. The article concludes that both countries should: (1) develop a more formal system for groundwater issues and (2) exercise vigilance with respect to NAFTA's ability to treat water solely as an economic good.

Neoliberalism and Counterinsurgency

Colombia ◽  
2020 ◽  
Author(s):  
Richard D. Mahoney
Keyword(s):  
United States ◽  
Free Trade ◽  
Latin American ◽  
North American ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The United States ◽  
The North ◽  
Trade Promotion ◽  
The U.S

How did the U.S.-Colombia free trade agreement come about? The officially named “U.S.-Colombia Trade Promotion Agreement” was the stepchild of a rancorous hemispheric divorce between the United States and five Latin American governments over the proposal to extend the North American Free Trade Agreement...

scholarly journals Welfare Impacts of the Mexico Potato Quarantine

2009 ◽  
Vol 41 (3) ◽  
pp. 761-776 ◽  
Author(s):  
Timothy J. Richards ◽  
Ignacio Molina ◽  
Osman Hussein
Keyword(s):  
Free Trade Agreement ◽  
Consumer Surplus ◽  
Trade Agreement ◽  
Welfare Cost ◽  
Trade Restrictions ◽  
Welfare Impacts ◽  
The North ◽  
Producer Surplus ◽  
Mexican Government ◽  
Border Areas

Under the North American Free Trade Agreement (NAFTA) tariffs on U.S. potato imports to Mexico were phased out by 1993. Citing phytosanitary issues, in 1996, the Mexican government placed quantitative restrictions on U.S. potato imports and restricted their import only to designated border areas. This article estimates the welfare cost of restricting U.S. potato imports into Mexico. We find that removing trade restrictions may lead to over 1.8 million tons of new imports into Mexico, a gain of consumer surplus of 4.0 billion pesos per year, and a loss of 2.9 billion pesos of producer surplus.

scholarly journals The Impact of NAFTA on the United States

2001 ◽  
Vol 15 (1) ◽  
pp. 125-144 ◽  
Author(s):  
Mary E Burfisher ◽  
Sherman Robinson ◽  
Karen Thierfelder
Keyword(s):  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Diversion ◽  
The United States ◽  
Trade Creation ◽  
Policy Debate ◽  
Trade Data ◽  
The North ◽  
The Impact ◽  
The U.S

We describe the main economic arguments posed for and against the North American Free Trade Agreement (NAFTA) during the U.S. policy debate. To evaluate these arguments, we analyze recent trade data and survey post-NAFTA studies. We find that both the U.S. and Mexico benefit from NAFTA, with much larger relative benefits for Mexico. NAFTA also has had little effect on the U.S. labor market. These results confirm the consensus opinion of economists at the time of the debate. Finally, studies find that trade creation greatly exceeds trade diversion in the region under NAFTA, especially in intermediate goods.

Welfare impacts of the 1996 United States - Canada Softwood Lumber (trade) Agreement

2001 ◽  
Vol 31 (11) ◽  
pp. 1958-1967 ◽  
Author(s):  
Daowei Zhang
Keyword(s):  
United States ◽  
Effective Means ◽  
Trade Agreement ◽  
The United States ◽  
Price Impact ◽  
Policy Debate ◽  
Quota System ◽  
Welfare Impacts ◽  
Softwood Lumber ◽  
The U.S

This paper investigates welfare impacts of the 1996 United States – Canada Softwood Lumber (trade) Agreement (SLA), which set up a tariff-regulated quota system to restrict softwood lumber export from Canada to the United States. An aggregate price model is used to estimate the price impact of the SLA, and the implied quantity and welfare effects are examined. The results show that while the anticipated change in lumber price is about $59 in 1997 U.S. dollars or 16%, on average, for the first 4 years under the SLA, the gains to U.S. producers of softwood lumber are large and the losses to U.S. consumers are much larger. In addition, Canadian producers have benefitted from the SLA in the U.S. market, and the Canadian government has collected a small amount of additional export fees. As the overall efficiency costs of the SLA are modest, the SLA can be seen as an effective means of welfare transfer from U.S. consumers to the U.S. and Canadian producers. These results should provide a framework for ongoing trade policy debate.

scholarly journals The contradictions of regionalism in North America

2009 ◽  
Vol 35 (S1) ◽  
pp. 147-167 ◽  
Author(s):  
ANN CAPLING ◽  
KIM RICHARD NOSSAL
Keyword(s):  
North America ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Trade Agreements ◽  
The United States ◽  
Economic Implications ◽  
The North ◽  
The World

AbstractStudents of regionalism almost reflexively include North America in their lists of regions in contemporary global politics. Inevitably students of regionalism point to the integrative agreements between the countries of North America: the two free trade agreements that transformed the continental economy beginning in the late 1980s – the Canada–US Free Trade Agreement that came into force on 1 January 1989, and the North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada, that came into force on 1 January 1994 – and the Secutity and Prosperity Partnership of North America (SPP), launched in March 2005. These agreements, it is implied, are just like the integrative agreements that forge the bonds of regionalism elsewhere in the world. We argue that this is a profound misreading, not only of the two free trade agreements of the late 1980s and early 1990s and the SPP mechanism of 2005, but also of the political and economic implications of those agreements. While these integrative agreements have created considerable regionalisation in North America, there has been little of the regionalism evident in other parts of the world. We examine the contradictions of North America integration in order to explain why North Americans have been so open to regionalisation but so resistant to regionalism.

scholarly journals The Reshaping of Mexican Labor Exports under NAFTA: Paradoxes and Challenges

2007 ◽  
Vol 41 (3) ◽  
pp. 656-679 ◽  
Author(s):  
Raúl Delgado-Wise ◽  
Humberto Márquez Covarrubias
Keyword(s):  
Labor Migration ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Analytical Framework ◽  
The United States ◽  
The Political ◽  
Mexican Migrants ◽  
The North ◽  
Restructuring Process ◽  
The U.S

From the perspective of the political economy of development, this article analyzes the role played by Mexican labor in the U.S. productive restructuring process under the aegis of the North American Free Trade Agreement. By conceptualizing the labor export–led model it dissects three basic mechanisms of regional economic integration: maquiladoras, disguised maquilas, and labor migration. Not only does this analytical framework cast light on the contributions made by Mexican migrants to the economies of the United States and Mexico, it also reveals two paradoxes: the broadening of the socioeconomic asymmetries between the two countries, and increased socioeconomic dependence on remittances in Mexico.

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